What is a Business Registration Number in Hong Kong, and why does almost every bank, tax filing, and contract ask for it first?
Hong Kong is often described as one of the easiest places in the world to do business. Less often mentioned is how narrowly that ease is defined. As of the latest government count, more than 1.4 million businesses are registered in the city. Each exists in official records under a single identifier issued by the tax authority. Without it, a company cannot open a bank account, file taxes, or, in many cases, trade.
This guide is designed for founders, finance teams, and overseas companies to understand the BRN, why it is essential, and how it is used in practice, ensuring smooth company registration and compliance in Hong Kong.
What is a Business Registration Number (BRN) in Hong Kong?
A Business Registration Number is the reference through which the Hong Kong government formally recognises a business. It is issued by the Inland Revenue Department under the Business Registration Ordinance at the point a company enters the tax system.
The number establishes that a business has been registered with the authorities and is permitted to operate. In practice, it underpins routine commercial activity and signals that a company exists in a compliant, verifiable form.
The Business Registration Number is printed on the Business Registration Certificate, a statutory document that must be displayed at the place of business or kept available for inspection. The number is routinely required for core administrative and commercial functions, including:
- Establishing corporate banking and payment arrangements
- issuing invoices and other formal business documents
- filing profits tax returns and corresponding with government authorities
In recent years, Hong Kong standardised the Business Registration Number to an eight-digit sequence, which also serves as the first eight digits of a company’s tax reference number. Official figures show that more than 1.4 million businesses are registered in Hong Kong, ranging from sole proprietorships and partnerships to multinational enterprises. Each operates under a Business Registration Number, making it a central feature of the city’s business and regulatory framework.
Why is a Business Registration Number Required in Hong Kong?
Why does Hong Kong, widely regarded as one of the world’s least restrictive business jurisdictions, insist that every enterprise register before it begins operating? The requirement reflects a deliberate trade-off. Rather than policing entry through licences or prior approvals, the city relies on mandatory registration to preserve transparency and administrative control while keeping barriers to commerce low.
A system built on registration
Hong Kong’s regulatory model is intentionally narrow, as most industries do not require prior approval to begin operating. The law requires businesses to identify themselves when they start trading, and the Business Registration Number is the record of that identification.
Issued under the Business Registration Ordinance, the number allows the authorities to know who is carrying on business, in what form, and under which jurisdiction, without prescribing how that business should operate.
Linking business activity to tax administration
The requirement exists mainly to support its tax system. The city’s tax system is territorial. It requires records of the income being generated in the territory.
The Business Registration Number is a standard identifier that enables the tax authority to:
- Issue profits tax returns
- Relate income statements and filings to a particular business.
- Enforce compliance where obligations are not met.
Verification in a cross-border business centre
Hong Kong’s commerce thrives amid separation. Firms barter, fund ventures and seal pacts with unfamiliar players abroad. There, deals rest less on rapport than on inspectable documents.
The Business Registration Number serves precisely that purpose. Banks, advisors, and partners use it to readily establish a firm’s standing under Hong Kong’s regulatory and fiscal umbrella before any engagement.
It is not a formality
The obligation to obtain a Business Registration Number is embedded in Hong Kong’s system of commerce governance. It enables the city to remain accessible to new businesses while preserving a clear administrative record of who operates within its borders.
Who Needs a Business Registration Number in Hong Kong?
Under Section 14 of the Business Registration Ordinance, any person or entity “carrying on a business in Hong Kong” must register within one month of commencing operations. The phrase “carrying on a business” has been interpreted by authorities to encompass:
- Organised and continuous economic activity,
- activities conducted with an intention to generate profit,
- and engagement in trade, commerce, or professional services.
This interpretation applies regardless of the operation’s scale, physical presence, or revenue size.
The requirement is not dependent on profit thresholds or incorporation status.
| Entity Type | When Registration Is Required |
|---|---|
| Individuals and sole proprietors | Required where commercial activities are systematic and ongoing, including freelancing, consulting, retail sales, or online trading. Earnings level is insignificant as even modest, recurring turnover triggers registration. |
| Partnerships | Required for any arrangement in which two or more persons jointly conduct business. Registration applies regardless of whether the partnership is formal or informal, written or verbal, provided the activity is continuous and commercial. |
| Hong Kong–incorporated companies | Mandatory for all companies formed under Hong Kong law, including private companies, public companies, and companies limited by guarantee. Issued alongside incorporation as a separate statutory requirement and used for tax and regulatory filings. |
| Overseas companies | Required where a foreign entity conducts business in Hong Kong through management, operational control, local employment, or contract execution. Physical premises are not required, and economic substance and local activity are decisive. |
| Digital and online businesses | Required where management, control, or core operations are based in Hong Kong, regardless of whether business is conducted online or through digital platforms. |
| Non-profit entities | Required where activities involve collecting or handling fees or donations. Tax-exempt status does not remove the obligation to obtain a BRN. |
Business Registration Number vs Company Registration Number in Hong Kong
The two numbers serve separate functions in law and are frequently misunderstood. One authorises the conduct of business activity; the other establishes a company’s legal existence. Together, they determine how an enterprise is recognised and regulated under Hong Kong law.
| Basis | BRN | CRN |
|---|---|---|
| Issuing authority | Inland Revenue Department | Companies Registry |
| Primary purpose | Tax identification and business regulation | Legal establishment of a company |
| Who must obtain it | Any person or entity carrying on business in Hong Kong | Companies incorporated under Hong Kong law |
| Applies to individuals | Required for sole proprietors, freelancers, and partnerships | Not available to individuals |
| Applies to partnerships | Required | Not applicable |
| Applies to foreign businesses | Required if business is carried on in Hong Kong | Required only upon registration as a non-Hong Kong company |
| Legal trigger | Commencement of business operations | Completion of incorporation |
| Time limit for compliance | Within one month of commencing business | Issued upon incorporation |
| Penalty for non-compliance | Statutory fines and possible imprisonment | Company cannot legally exist or operate |
How to Apply for a Business Registration Number in Hong Kong?
The process of applying for a business registration number in Hong Kong is intended to operate on a procedural rather than discretionary basis. The process is standardized, largely documentary, and built to bring a business into the tax system with minimal delay. The following is the procedure followed by the business for registration, along with the documents required to be submitted.
| Steps | What needs to be done? |
|---|---|
| Step 1: Determine Whether Registration Is Required |
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| Step 2: Identify the Legal Structure |
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| Step 3: Assemble Essential Business Details |
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| Step 4: Submit the Registration Application |
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| Step 5: Pay the Statutory Registration Fee |
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| Step 6: Receive the Registration Certificate |
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| Step 7: Meet Display and Inspection Requirements |
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| Step 8: Renew Registration Within the Validity Period |
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How Long is a Business Registration Number Valid in Hong Kong?
A Business Registration Number in Hong Kong is tied to a Business Registration Certificate, and its validity is defined by the period covered on that certificate. In practice, most certificates are issued with an expiry date of one year or three years after the date of commencement or renewal. The choice between these terms is made at the time of application and determines how long the registration remains in effect.
The certificate itself will bear a clearly printed “Date of Expiry,” and a business must renew its registration before that date to remain compliant. The Inland Revenue Department generally issues renewal notices in advance of expiry, and a timely payment of the prescribed fee, and when applicable, any levy results in a renewed certificate that continues the validity of the Business Registration Number for another fixed term.
Failing to renew before the expiry date can expose a business to penalties and disrupt its ability to carry out fundamental commercial activities. Given that many counterparties, including banks and government agencies, rely on a valid certificate as proof of lawful status, businesses are advised to treat the renewal obligation as a routine compliance matter rather than an optional administrative detail.
What Happens If You Operate Without a Business Registration Number in Hong Kong?
Operating without a Business Registration Number or failing to register within the time required by law is not a mere technical oversight. It constitutes a breach of the Business Registration Ordinance, and the consequences extend beyond administrative inconvenience.
First comes the legal breach
The law requires registration within one month of commencing business. Missing that deadline is, by itself, an offence. The authorities do not need to show that tax was avoided or revenue concealed. The failure to register is sufficient.
Then come statutory penalties
Once non-registration is established, the exposure is clear:
- A fine that can reach HKD 5,000
- potential imprisonment in serious or prolonged cases
- These penalties attach to the act of operating unregistered, not to the scale of the business.
Late registration does not erase the past.
Businesses that register after the deadline are not treated as if they are starting anew. Registration fees and levies may be assessed retroactively, covering the period during which the business operated without registration.
Regulatory attention escalates quietly.
Initial non-compliance usually triggers written notices. Silence or delay can move the matter from correspondence to enforcement. What begins as an administrative omission can become part of a formal compliance record.
Credibility is affected, even where enforcement is delayed
Hong Kong’s commercial environment relies heavily on documentation. Without registration, a business may appear informal or unreliable to advisers, lenders, and overseas partners who depend on official records to assess legitimacy.
Daily operations become harder to sustain
In other words, the unregistered business will have to face the following issues:
- Banks may refuse to open or operate accounts.
- Contracts can be held up by the demand for registration verification.
- Tax returns cannot be submitted correctly.
In some transactions, the Business Registration Number is the first document required.
How Can We Help?
3E Accounting Hong Kong assists businesses in meeting Hong Kong’s registration requirements with accuracy and continuity. We support clients in determining whether registration is required, preparing and submitting the necessary filings, and ensuring renewals are completed on time. The focus is on compliance that is correct from the outset, so routine administrative obligations do not become avoidable regulatory issues later.
Get Your Hong Kong Business Registration Right
Clear, accurate support for business registration and ongoing compliance in Hong Kong, so administrative obligations do not become regulatory risks.
Frequently Asked Questions
Yes. Profitability is not the test. Registration is required once an activity is carried on with continuity and with the intention of earning income. The law does not wait for profit to materialise. Even early-stage or loss-making businesses fall within scope. What matters is activity, not outcome.
No. The two serve different legal purposes. One authorises the conduct of business activity, while the other establishes a company’s legal existence. A business may require a Business Registration Number even if it is not incorporated. Confusing the two can lead to compliance gaps.
Only in limited circumstances. If management, operations, or contracts are conducted from Hong Kong, registration is typically required. Physical office space is not decisive. Authorities focus on economic substance rather than form. Overseas incorporation alone does not remove the obligation.
Missing the deadline constitutes an offence. Registration can still be completed, but penalties and retroactive fees may apply. Late registration does not reset compliance history. The exposure arises from operating unregistered, not from the failure to correct it later.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
